Bank of Cyprus Holdings Posts Strong Q1 Results and Announces Dividend
Bank of Cyprus Holdings has reported a robust start to the year with a notable 40% increase in first quarter profits compared to the same period last year, reaching €133 million. Despite this impressive growth, the figures fell slightly short of the €138 million after-tax profits recorded in the final quarter of the previous year. Nevertheless, the bank’s financial performance has been met with optimism, particularly in light of its announcement to pay out a final dividend of 25 cents per share on 2023 earnings.
In addition to the dividend, the bank has unveiled a share buyback plan valued at €25 million. This strategic move has been well-received by investors, propelling the stock to an all-time high of 371p on the London Stock Exchange and 424c on the Cyprus Stock Exchange. The shares experienced an intra-day gain of 2% on both exchanges, with a year-to-date increase of approximately 20%.
Group CEO Panicos Nicolaou highlighted the bank’s strong performance, stating, “We proposed a total distribution of €137 million in respect of 2023 earnings comprising a cash dividend of €112 million and an inaugural share buyback of up to €25 million.” This represents a significant step forward in the bank’s strategic progress, with an overall payout ratio climbing to 30%, a substantial rise from the previous year.
The bank’s return on tangible equity (RoTE) stood at an impressive 23.6% for the first quarter, marking the fifth consecutive quarter where RoTE exceeded 20%, surpassing the bank’s targets for 2024. Nicolaou credited this success to strong net interest income, prudent cost management, and robust asset quality.
Amid geopolitical uncertainties, Nicolaou expressed confidence in the resilience of the Cyprus economy, which saw a GDP increase of 3.3% in the first quarter and is projected to grow by 2.9% in 2024—potentially outperforming the Eurozone average. The CEO underscored the bank’s solid capital position, high liquidity, and healthy asset quality as key factors underpinning its balance sheet.
April marked a significant milestone for Bank of Cyprus with the issuance of €300 million MREL-eligible green senior preferred notes—the first-ever green bond issuance by the bank. This initiative aligns with Cyprus’s transition towards sustainability and comfortably meets the Group’s MREL requirements.
For investors seeking good stocks to invest in, Bank of Cyprus Holdings’ latest performance may signal it as one of the best future stocks. With a focus on delivering shareholder value and contributing to the Cypriot economy’s growth, it could be considered among the best share to buy for long term investment. As Nicolaou concluded, the bank will continue to refine its strategy and financial targets, aiming to maintain its position as one of the best shares to invest in for those looking at best stocks to invest for future gains.
